Intellectual Property in the Cathedral

Abstract

A variety of commentators have called for the increased application of liability rules, including compulsory licenses, to intellectual property. Such arguments are well taken, but unfortunately stop short of advocating the full range of potential intellectual property entitlement allocations. Property theory offers a range of allocative structures, including reverse liability rules and “put”-type entitlements that could be beneficially applied to intellectual property. This chapter describes several such rules and argues for their consideration in the canon of intellectual property entitlements.

Keywords: property rules, liability rules, compulsory licenses, patents, intellectual property, call, put, options

JEL Classification: D23, H41, K11, O31, O34